International Journal of Value Chain Management (21 papers in press)
Six Sigma and Market Performance in Jordanian Hospitals
by Najm Najm
Abstract: This study sought to provide a broad review of the evolution of the Six Sigma as a strategic vision and an effective methodology for improving quality and reducing defect in the growing context interest in its applications in the industrial and service fields. In the applied section, the study attempted to determine the effect of the Six Sigma dimensions (strategic vision, DMAIC cycle, patient orientation, hospital commitment to employees) on two criteria for market performance (competitiveness and hospital reputation) in Jordanian hospitals. The effect of the mediator variable (acceptance of failure) in hospitals on the relationship between the Six Sigma and competitiveness was also investigated. The results confirmed that there is a positive impact of the three dimensions of the Six Sigma (strategic vision, patient orientation, and hospital commitment to employees) on the competitiveness and reputation of the company. The DMAIC cycle did not seem to have a significant effect. Moreover, acceptance of failure as a mediator variable had no significant effect on the relationship between the Six Sigma and competitiveness.
Keywords: Six Sigma; DMAIC; customer orientation; commitment to employee; competitiveness and reputation.
Migrant Workers and Their Roles in the Korean Economy and Society
by Sang Chul Park
Abstract: Koreas rapid economic development is mainly based on export oriented industrial policy and technological innovation policy supported by an efficient human resource management and a strong education system. Since Korean industries have become globalized, migrant workers started to arrive in Korean labor market. It increased from 300,000 in 2000 to 1,409,000 in 2017. Most of migrant workers are working in SMEs as irregular jobs with low wages although their wages in Korea are much higher than their home countries. This paper focuses on roles of migrant workers in the Korean economy and society. Moreover, it analyses the fundamental reasons why migrant workers pour to Korea in such a short period and which impacts of the migrant workers have created on the Korean economy and society. Last, but not least, it compares situation and working condition of Korean migrant workers with other migrant workers in advanced countries.
Keywords: Economic development; globalization; migrant worker; conflict; job security.
Problems and Prospect of Rural poultry farm in Bhutan. A study from a value chain perspective
by Elangbam Haridev Singh, Madan Gurung, Dawa Drakpa
Abstract: The objective of this study was to explore the challenges of poultry farmers from the perspective of the value chain in the Chukha district. A total of 33 farmers, and 7 retailers were issued a questionnaire to study the challenges faced by farmers in three states of value chain; backward, main activity and forward chain. The study found that climatic condition and the high price of chicks as the main problems in backward value chain exorbitant feed price and bird diseases in the case of main activity and cost of packaging and poor storage system are the main challenges in the forward value chain. The findings have important implications for government and local district policymakers in developing the proper policy and allows policymakers to focus on a specific area of the poultry value chain where corrective initiative can be taken by the government which will contribute to district economic development.
Keywords: rural enterprise; poultry farm; value chain; Bhutan.
Inter-firm software development: the case of mobile work machines
by Antti Rantala, Helena Kortelainen, Josu Takala
Abstract: Software plays an essential role in the transition towards automation and autonomous work machines. The role of small specialist companies has increased, as even large original equipment manufacturers do not have the necessary skills and know-how to develop complex products without external help. This study investigated companies views in the mobile work machine domain concerning inter-firm software development. The objective of the study was to explore companies willingness to co-develop software with other companies in contractual alliances or joint ventures and to identify the main benefits, risks and enablers concerning inter-firm software development. The results indicate that the companies were interested in inter-firm software development via both governance models, but contractual alliances were a more preferable model among the interviewees. The key benefits of inter-firm software development were the possibilities to increase the speed and creativity of the development processes while sharing development costs. The main risks in inter-firm software development were the possibility of becoming too dependent on the partner and the risk of failing to create enough value to cover the collaboration costs. The key enablers for inter-firm software development included mutual trust, open knowledge sharing and precisely determined contracts about development costs and revenue sharing.
Keywords: Collaboration; Inter-Firm; Software Development; Joint Venture; Contractual alliance; Strategic Alliance Governance model; Business Model; Cooperation; Mobile Work Machines.
Factors Determining Building Customers Loyalty to organic agricultural products in Bangkok, Thailand
by Thun Chaitorn, Shahab E. Saqib
Abstract: This study aims to determine factors for building customers loyalty to organic agricultural products in Bangkok, Thailand. Data were collected from 400 senior customers- who were above 55 years of age and were consuming organic agricultural products. The data were collected through a questionnaire survey. Structural Equation Modelling (SEM) was used for determining the factors for customer loyalty. Findings show that service marketing strategy, customer relationship management, and customer satisfaction were important factors determining customers loyalty. In customer satisfaction, the most important factor for building customer loyalty for organic agricultural products in Bangkok is regarding the convenience received, and customer relationship management regarding educating for relationship building. These two factors have the greatest influence on the customers positive attitude. This is the first study that has been conducted in the text of Bangkok a metropolitan city of Thailand. The findings suggest that farmers should be trained to produce organic products according to international standards as well as knowledge on marketing strategies that can build customers loyalty.
Keywords: marketing strategy; customer relationship management; customer satisfaction; customer loyalty; organic agricultural product; Thailand.
Inventory Management Strategies of Manufacturing Industries: Evidence from Food Processing Firms in Ghana
by Richard Kofi Opoku
Abstract: The paper purposely describes the common inventory management strategies adopted by food processing firms in Ghana. The paper specifically investigated the key inventory management strategies adopted by the firms and their contributions to inventory management. It also examines the key strategy adopted by these firms during inventory management. The paper adopts the quantitative approach, descriptive design and is backed by the theory of constraints. It collects primary data through structured questionnaires from 104 food processing firms in Ghana. The study found the Economic Order Quantity and Strategic Supplier Partnership strategies as the most preferred strategies for managing inventories by food processing firms in Ghana. Data collected are analysed using descriptive statistical tools and the results reveal that food processing firms in Ghana consider the Economic Order Quantity (EOQ) as the most-adopted strategy during inventory management; followed by Strategic Supplier Partnership (SSP) strategy. The findings are geared toward informing policies and practices associated with inventory management while expanding previous studies on inventory management strategies by focusing on the food processing industry in Ghana. The results would specifically facilitate the adoption and development of relevant inventory management strategies of the food processing industries and consequently promote firm performance, competitiveness, and overall economic development of Ghana.
Keywords: Inventory Management Strategies; Just-In-Time; Economic Order Quantity; Strategic Supplier Partnership; Vendor Managed Inventory; Activity based Costing.
On the Relevance of Parties in Service Environment to Customer Citizenship Behaviors: Evidence from Hotels in Vietnam
by Thi Bich Hanh Tran, Quy Duong Pham, Huong Ly Nguyen, Thu Tra Nguyen, Gia Bao Le, Tuan Anh Pham
Abstract: The relationship, communication and interaction between customers and businesses especially in services field have always been the most interesting and never ending topic for researchers and economists to study. Understanding about the customer behavior is the key to success. The interaction from business to customer is always visible and easy to observe, but on the other hand, how customers interact back to business is still an indistinctive concept. It was only until recently, more attention is put into study to form theoretical understanding of customer constructive bundle of positive, voluntary, helpful behaviors that are beneficial to business services overall which is named Customer Citizenship Behavior (CCB). Realizing that current research is not specific and detailed enough on the topic, the research aims at exploring the factors affecting customer citizenship behavior in Vietnam hospitality business field. The data were collected from Vietnamese customers with a survey. The results show that factors pertaining to four key players in service environments including other customers citizenship behavior (other customers), employee credibility (service staff), customer orientation of service firm (service firm), and customers social identity (customer per se) are significantly linked to both customer citizenship behavior toward other customers and customer citizenship behavior toward firm. The results of this study offers valuable contributions to both theoretical and practical field.
Keywords: Customer citizenship behaviors; employee credibility; social identity; customer orientation; other customer citizenship behaviors.
The impact of Additive Manufacturing on production location decisions: a case study in Belgium and the Netherlands
by Nauwelaerts Ysabel, Nevens Joren, Pauwels Lucass
Abstract: This study investigates how the implementation of Additive Manufacturing (AM) in production affects companies production location decisions, a research gap present in the literature on AM and Global Value Chains. Based on qualitative case studies at five AM manufacturing companies active in Belgium or the Netherlands we conclude that the implementation of AM for production activities increases the importance of access to technical knowledge, agglomeration economies, within-firm knowledge spillovers and customer proximity in production location decisions. On the other hand, AM decreases the importance of access to intermediate inputs and does not affect the importance of labor costs by shifting labor from production to pre- and post-production activities, rather than substituting it. Today, AMs overall effect on location decisions is still relatively small since the technology is mostly used as a complementary production method next to traditional manufacturing, rather than as a substitute. Nevertheless the recent pandemic crisis showed companies the risks of being dependent on supplies from remote areas, which may accelerate the implementation of AM in the future.
Keywords: additive manufacturing; 3D printing; production; location; agglomeration economies; knowledge spillovers; global value chains.
Green production-distribution planning under competition in a brand-differentiated supply chain
by Mahsa Zokaee, Mahdi Mokhtarzadeh, Masoud Rabbani
Abstract: This research proposes the development of a green IPD planning under non-competitive and competitive market conditions, aiming at minimizing costs, maximizing service level, and minimizing carbon emissions. For the competitive market model, a green competition and a Stackelberg competition between brand-differentiated manufacturers are considered. A real case study is investigated to evaluate the application of these models. The numerical results express that competitions enhance both financial and environmental performance of supply chains and ameliorates supply of products to retailers. Moreover, this study supports informed decision-making by supply chain authorities to improve inventory control and replenishment to address customer demand sensitivity.
Keywords: Supply chain; Green supply chain management; Integrated production-distribution planning; Competition; Brand-differentiated competition.
CONTRACT FARMING AS A MARKETING STRATEGY TO IMPROVE THE POULTRY AGRIBUSINESS IN GHANA
by Richard Bannor
Abstract: The local poultry subsector of Ghana is burdened with production and marketing challenges rendering it non-competitive against imported chicken products. One of the suggested strategies to solve this challenge is contract farming. However, empirical studies on contract farming have been widely researched in the crop subsector, with limited studies in the poultry subsector. This study, therefore, examined the choice of contract farming as a marketing outlet among poultry agripreneurs. The Propensity Score Matching technique was used to analyse the impact of contract farming on the total value of sales. The results indicate that several demographic, marketing, production and institutional characteristics influenced contract farming choice. Beyond this, contract farming was revealed to have a significant impact on the total value of sales of broiler products. The study recommends collaboration between the Ministry of Food and Agriculture and local radio stations in the study area to provide farmers with market information on the prices and demand for layers, broilers and eggs in neighbouring markets to ascertain their decision to choose contract farming or otherwise.
Keywords: Poultry; chicken; contract; marketing outlet; principal-agent problem.
Commitments and Communication Boost Competitive Advantage via GSCM on Fuel Retail Industry in Indonesia
by Hari Purnomo, Ina Primiana Syinar, Fani Cahyandito, Diana Sari
Abstract: The fuel retail industry in Indonesia has grown rapidly with the enactment of UU No. 22 of 2001. Increasing competitive advantage could be conducted by implementing green supply chain management (GSCM) which was related to commitment and communication. This is a descriptive and associative study by using quantitative approach. We used structural equation model (SEM) equation with a total sample of 640 respondents. Research results showed several things. First, commitment and communication had a positive effect on GSCM. Second, commitment and communication had a positive effect on competitive advantage. Third, commitment and communication had influence on competitive advantage through GSCM. The results of the study showed that competitive advantage in the fuel retail industry could be increased by implementing GSCM. The GSCM needed to be supported by commitment and communication. Commitment was the foundation of GSCM, while communication ensured GSCM meets customer needs and desires.
Keywords: commitment; communication; green supply chain management; GSCM; competitive advantage; fuel retail industry.
Position of Vietnam in Global Value Chains: An Empirical Approach
by Viet Khoi Nguyen, Shashi Kant Chaudhary
Abstract: The participation of Vietnam in global value chains has increased significantly in recent decades. This paper aims to analyze the ways in which Vietnam has connected to the international production network and how such connectivity has affected the position of its industries in global value chains (GVCs). The methodology used in this paper has three components: the measure of the GVC participation index, the measure of the GVC position index, and the estimation of the positions of industries on a smile curve. In addition, we use the distance to final demand approach by Fally (2012) to define the GVC position index. Our analysis indicates that Vietnam specializes in middle-stream activities, including the assembly of computers and electronics, textiles and footwear, food and beverages, electrical machinery, and other processed products. We also discuss how Vietnam is participating in global value chains and how it can perform better in the future.
Keywords: Backward linkage; Forward linkage; Global value chains; GVC participation.
Exploring the direct and indirect effect of trust in leadership and perceived organizational support on turnover intentions
by Rui Silva, Álvaro Dias, Leandro Ferreira Pereira, Renato Lopes Da Costa, Rui Gonçalves
Abstract: Currently, employee retention is a critical aspect of people management, especially in the context of pandemics or post-pandemics, where job insecurity and job destruction challenge workers trust in leadership and organisational support. Using survey data treated with structural equation models, this study explores, in the context of the COVID-19 pandemic, the direct and indirect effects on turnover intentions of trust in leadership and perceived organisational support, using the mediating effect of job satisfaction. The results reveal that job satisfaction and perceived organisational support have a negative impact on turnover intention, but less that what was expected. The results obtained in the context of COVID-19 delivers important insights related to changes of employees perceptions, their relations with the organisation and its impact in the turnover intention.
Keywords: job satisfaction; COVID-19; trust in leadership; perceived organisational support.
Reshaping Street and Home-Based Cottage Food Business Strategies through Social Business after Covid-19 Pandemic
by Bordin Rassameethes, Sasivimol Meeampol
Abstract: This impact-driven research investigated how food design, technology, and business strategy can solve social problems as part of a social business initiative. A total of twenty street food vendors and home-based food entrepreneurs were selected, and group-focused discussions were conducted based on the study's purpose. They were assessed and advised through the Mystic Kitchen model and social business concept to make their operations more productive and increase sales to cope with lifestyle changes due to the pandemic. The study found that the primary elements in successful business strategies through social business are communication, trust, resource allocation, and matching technology tools.
Keywords: Value chain; Street food; Cooking business; Social business; Covid-19; Small business strategies.
A Framework for design Lean Supply Chain: A Case Study in a Peruvian Concrete Company
by Ivan Arauco, Edgar Ramos, Ron Mesia, Phillip Coles
Abstract: This paper seeks to demonstrate the positive effects of a lean supply chain at a concrete company. Management of this lean SC illustrates a new lean SC approach in the Peruvian construction industry. This case study provides a lean SC framework. The proposed methodology is introduced step-by-step according to lean management concepts; each step uses lean tools: visual management, 5S methodology, and standardised work. The findings demonstrate the viability of the methodology. We summarise the results and conclusions obtained in the research. These specific tools improved metrics in each SC process studied: source, make, and deliver. Delivery times were improved by 20%, and SC costs were reduced by 8%. This case study shows the benefits of costs and time. It demonstrates that the lean SC framework and tools applied to an integrated SC achieved exceptional operational results.
Keywords: lean supply chain; supply chain; order fulfillment; ready-mixed concrete.
Industry 4.0: Smart Preventive Maintenance with Optimal Planning and Scheduling Process of SMEs
by Velmurugan K, Saravanasankar S, Venkumar P, K.P. Paranitharan, Sudhakarapandian R
Abstract: In the modern world, small and medium scale manufacturing industries face a lot of challenges to achieve the reliability, availability, and safety as important performance attributes of the shop floor. In which planning and scheduling of preventive maintenance activities are considered to be a major issue in SMEs. This study is to propose the optimal framework of the preventive maintenance (PM) planning and scheduling process in SMEs. The optimal maintenance parameters (failure rate and repair rate), availability variations of the systems have been predicted through the utilisation of the Markov birth-death approach. To overcome the drawbacks associated with the existing optimal PM plan, a new approach is proposed in this study to develop an optimal preventive maintenance plan for Electronic Actuating Switch manufacturers through the digital ecosystem. This proposed method integrates manufacturing subsystem failure into smart digital ecosystems and also to estimate the actual remaining useful life of the machines.
Keywords: small and medium sized enterprises; preventive maintenance; Markov birth-death process; remaining useful life; optimal planning and scheduling.
Bibliometric - Thematic Analysis and A Technology-Enabler-Barrier-Based Framework for Digital Supply Chain
by Vikrant Sharma, Satyajit Anand, Mukesh Kumar, Manjula Pattnaik
Abstract: Digital supply chain is a proactive, value-driven, and efficient process that helps businesses generates new sources of revenue and business value. From 2000 to 2021, this article covers the evolution of digital supply chain research, outlining critical concerns and trends for the future. This analysis aims to undertake a bibliometric analysis of the literature on digital supply chains to identify emerging trends in this subject through a review of the most influential articles, keywords, authors, institutions and countries. Three software tools were used to accomplish this goal: The R package (Bibliometrix R Package), VOSviewer and SciMAT. According to the research, Germany, Turkey, and the USA have the most publications and total citations. Additionally, a framework based on technology, enablers, and barriers is proposed, and a discussion of the future path of the digital supply chain. This study is the first to analyse digital supply chains evaluation and give a decision-making framework.
Keywords: digital supply chain; bibliometric analysis; thematic analysis; framework.
Predictors of burnout among supply chain management professionals
by Ryan Atkins, Abdurrezzak Sener, Matt Drake, Kathryn Marley
Abstract: The competitive market for supply chain management (SCM) talent has increased the importance of retaining SCM employees. Despite generally positive opinions of SCM careers, high levels of turnover among SCM professionals exist, and burnout has often been cited as a cause for turnover. Based on a survey of 104 US-based SCM professionals, and using person-environment fit as a theoretical background, this study found that burnout is increased when workers perceive a deficit in the amount of remote work permitted and when working overtime and non-traditional hours (OT/NT), whereas burnout is reduced by pay satisfaction and a perception of transformational leadership. There is also an interaction between pay satisfaction and OT/NT, with OT/NT taking precedence over pay satisfaction in driving feelings of burnout. Very few studies have addressed talent management among SCM professionals, and this study has identified insights that are relevant to managers and to future research on this subject.
Keywords: supply chain; burnout; overtime; remote work; person-environment fit; P-E; pay; leadership.
A Smart DDMRP Model using Machine Learning techniques
by Jose Aguilar, Ricardo Dos Santos, Rodrigo Garcia, Carlos Gomez, Marxjhony Jerez, Marvin Jimenez, Eduard Puerto
Abstract: This paper proposes a hybrid algorithm based on the demand-driven manufacturing resources planning (DDMRP) model and machine learning techniques to determine when and how much to purchase a product. The DDMRP model optimises the inventory using predictive models to determine the product demands, and the behaviour of the providers. Then, our DDMRP model determines when and how much to purchase. Thus, our approach defines a smart inventory management to establish what should be purchased and when. The preliminary results are very encouraging because the inventory follows the optimal levels by product based on demand, avoiding a lack of inventory.
Keywords: inventory management; demand-driven model; machine learning; supply chain; DDMRP.
ANALYSING THE VALUE CHAIN OF SKIPJACK TUNA (Katsuwonus pelamis) IN PARTIDO DISTRICT, CAMARINES SUR, PHILIPPINES
by Ariel Delfino
Abstract: Skipjack tuna is a widely acceptable raw material in the canning industry. There are various written studies on tuna supply and value chain management, but literature focusing primarily on the skipjack tuna industry is limited, particularly in the Philippines. This paper attempts to fill that gap by analysing the value chain of skipjack tuna in Partido District, Camarines Sur. Eleven existing chains in the skipjack tuna industry and the dynamic relationship among players were studied, all of whom earn a reasonable profit in both the peak and lean seasons. This study also identified challenges to the tuna industry in Partido District such as the strict implementation of Republic Acts 10654 and 8550, the seasonality of skipjack tuna in the Lagonoy Gulf, weather-related profit losses, limited financial access or capital for business operation, lack of processing equipment or advanced technology, debtors or partial remittances, and the existing health crisis.
Keywords: cost and return analysis; Lagonoy Gulf; skipjack tuna; tuna industry; value chain analysis.
A Fuzzy logic assessment Framework for collaborative development of Product-Service Systems
by Mourad Harrat, Farouk BELKADI, Guy CAVEROT, Alain BERNARD
Abstract: The development and value chain management of product-service systems (PSS) requires companies to look for new capabilities, regarding the disparate components of a PSS. However, interfirm collaboration in this context presents several particularities which may be challenging for the stakeholders and can lead to project failure. In this regard, there is still limited literature addressing frameworks and tools to manage the collaborative aspects of PSS from an organisational point of view. This paper presents a methodology to develop a framework to support companies in choosing suitable partners in a PSS development project and to improve collaboration. Thus, an assessment model is built using key performance indicators (KPIs) based on important collaboration performance factors, with the help of a fuzzy logic tool. This model is then tested and validated in two different PSS case studies.
Keywords: decision aid; interfirm collaboration; product-service system; PSS; fuzzy logic.